Senate File 2041 - Introduced



                                       SENATE FILE       
                                       BY  LAMBERTI


    Passed Senate, Date               Passed House,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to the increases in the amount of the military
  2    service tax credit and exemption and the reimbursement amount
  3    and including an applicability date provision.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 5225XS 81
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PAG LIN



  1  1    Section 1.  Section 25B.7, subsection 2, paragraph c, Code
  1  2 2005, is amended to read as follows:
  1  3    c.  Military service property tax credit and exemption
  1  4 pursuant to chapter 426A, to the extent of six dollars and
  1  5 ninety=two cents the dollar amount per thousand dollars of
  1  6 assessed value of the exempt property specified in section
  1  7 426A.2.
  1  8    Sec. 2.  Section 426A.2, Code 2005, is amended to read as
  1  9 follows:
  1 10    426A.2  MILITARY SERVICE TAX CREDIT.
  1 11    The moneys shall be apportioned each year so as to replace
  1 12 all or a portion of the tax which would be due on property
  1 13 eligible for military service tax exemption in the state, if
  1 14 the property were subject to taxation, the amount of the
  1 15 credit to be not more than six dollars and ninety=two cents
  1 16 the dollar amount specified in this section per thousand
  1 17 dollars of assessed value of property which would be subject
  1 18 to the tax, except for the military service tax exemption.
  1 19 The maximum amount of the tax credit per thousand dollars of
  1 20 assessed value shall be as follows:
  1 21    1.  For taxes due and payable in the fiscal year beginning
  1 22 July 1, 2007, the amount of eight dollars and thirty cents.
  1 23    2.  For taxes due and payable in the fiscal year beginning
  1 24 July 1, 2008, the amount of nine dollars and sixty=nine cents.
  1 25    3.  For taxes due and payable in the fiscal year beginning
  1 26 July 1, 2009, the amount of eleven dollars and seven cents.
  1 27    4.  For taxes due and payable in the fiscal year beginning
  1 28 July 1, 2010, the amount of twelve dollars and forty=six
  1 29 cents.
  1 30    5.  For taxes due and payable in the fiscal years beginning
  1 31 on or after July 1, 2011, the amount of thirteen dollars and
  1 32 eighty=four cents.
  1 33    Sec. 3.  Section 426A.11, subsections 1 and 2, Code
  1 34 Supplement 2005, are amended to read as follows:
  1 35    1.  The property, not to exceed two thousand seven hundred
  2  1 seventy=eight dollars the dollar amount specified in this
  2  2 subsection in taxable value of any veteran, as defined in
  2  3 section 35.1, of the First World War.  The maximum amount of
  2  4 the exemption shall be as follows:
  2  5    a.  For taxes due and payable in the fiscal year beginning
  2  6 July 1, 2007, the amount of three thousand three hundred
  2  7 thirty=four dollars.
  2  8  b.  For taxes due and payable in the fiscal year beginning
  2  9 July 1, 2008, the amount of three thousand eight hundred
  2 10 eighty=nine dollars.
  2 11  c.  For taxes due and payable in the fiscal year beginning
  2 12 July 1, 2009, the amount of four thousand four hundred forty=
  2 13 five dollars.
  2 14  d.  For taxes due and payable in the fiscal year beginning
  2 15 July 1, 2010, the amount of five thousand dollars.
  2 16  e.  For taxes due and payable in fiscal years beginning on
  2 17 or after July 1, 2011, the amount of five thousand five
  2 18 hundred fifty=six dollars.
  2 19    2.  The property, not to exceed one thousand eight hundred
  2 20 fifty=two dollars the dollar amount specified in this
  2 21 subsection in taxable value of an honorably separated,
  2 22 retired, furloughed to a reserve, placed on inactive status,
  2 23 or discharged veteran, as defined in section 35.1.  The
  2 24 maximum amount of the exemption shall be as follows:
  2 25    a.  For taxes due and payable in the fiscal year beginning
  2 26 July 1, 2007, the amount of two thousand two hundred twenty=
  2 27 two dollars.
  2 28  b.  For taxes due and payable in the fiscal year beginning
  2 29 July 1, 2008, the amount of two thousand five hundred ninety=
  2 30 three dollars.
  2 31  c.  For taxes due and payable in the fiscal year beginning
  2 32 July 1, 2009, the amount of two thousand nine hundred sixty=
  2 33 three dollars.
  2 34  d.  For taxes due and payable in the fiscal year beginning
  2 35 July 1, 2010, the amount of three thousand three hundred
  3  1 thirty=four dollars.
  3  2  e.  For taxes due and payable in fiscal years beginning on
  3  3 or after July 1, 2011, the amount of three thousand seven
  3  4 hundred four dollars.
  3  5    Sec. 4.  APPLICABILITY DATE PROVISION.  This Act applies to
  3  6 property taxes due and payable in fiscal years beginning on or
  3  7 after July 1, 2007.
  3  8                           EXPLANATION
  3  9    This bill doubles the amount of the military service tax
  3 10 credit and exemption.  However, the increase is implemented
  3 11 gradually over a five=year period.  The amount of the
  3 12 reimbursement from the state is also increased over a five=
  3 13 year period from $6.92 to $13.84 per $1,000 of the assessed
  3 14 value of the exempt property.
  3 15    The bill applies to property taxes due and payable in
  3 16 fiscal years beginning on or after July 1, 2007.
  3 17 LSB 5225XS 81
  3 18 mg:nh/je/5.1